David Nurek Chairman

Distell is A global company of South African essence Innovative, with a clear focus on key brands Lean, flexible and responsive to consumer needs A people company where every stakeholder is important

Corporate governance Board committed to principles of good governance Highest standards of integrity, fairness and social responsibility Formal critical evaluation was conducted of our compliance with King II and JSE Securities Exchange requirements

Characteristics of South African macro environment in 2001/2002 Softening Rand –Negative impact –Positive impact Increased integration with the world economy Volatility

US$/Rand exchange rate for the year to June Average per month

PPI Excise on spirits Ace 5kg Maize CPI, PPI and food prices indexed to JJ 1999 Source: AC Nielsens, Distell CPI Klipdrift (inbond) 116.8

Effects in 2002 Windfall income from exports –Maintained prices in foreign currency Raw materials scarcity - imports to sustain markets Increased costs of inputs –Packaging –International structures & marketing Imperative to increase exports to reduce risk

Final household disposable income Source: Reserve Bank, AC Nielsens

Non - durable goods Final household consumption expenditure (1995 prices) Source: Reserve Bank, AC Nielsens

Local market trends Source: Nielsens 12 months to JJ

Financial highlights Merger integration process completed Increase of 6,7% in sales revenue 24,3% growth in trading income Headline earnings up 33,6% Total dividends increased 32,1% In an environment of increasing domestic volatility it is essential to be an effective international player

Etienne Heyns Director - International Operations

World class service Wines Africa Amarula Strategic approach

Amarula strategy Aspirations To become the preferred cream liqueur in the world Strategy Premium positioning with strong support –Premium pricing (compared to Baileys) –‘Big distribution’ channels –Strong marketing support –Financial commitment Strong distribution partners –Brown Forman (USA) –First Drinks (UK) –Peter Mielzynski Agencies (Canada) –Aurora (Brazil) –Underberg (Germany) –Marie Brizard (Spain)

Amarula - achievements & prospects Strong growth: USA, Canada Slower yet good growth: Germany, Spain Consolidate: Brazilian triangle UK - turnaround plans in place Amarula already biggest contributor to marginal income of Distell - set to grow

Africa - strategy BLNS - use established structures Substantial direct investment in key markets Limited structures in markets with good potential but risk elements Develop efficient distribution for further markets

Africa - achievements & prospects Other than BLNS, performance disappointing in 2002 Plan –Tailored marketing approach –Flexible distribution structure –Aggressive sales approach –Adaptable and tailored production configuration –Optimal share investment Expected return - 3 fold increase

Wine strategy

Wines - achievements New organisation - fully staffed (including UK key account manager, value chain analyst) Customer segmentation completed International logistics in place New APO forecasting in place UK strategy in place - new listings USA pilot project Germany, Norway - new listings Major new product developments

World class service Distell must deliver – very large volumes – consistent quality – at target cost – on short notice – always on time

World class service

Jan Scannell Managing Director

New way of working - DMOS

Our employees Loyal - 45% of staff over 10 years’ service Average age of 38 Recruitment of new talent

Employment equity Plan in place Management measured on attainment of goals

Corporate social investment Must align with corporate objectives Arts & Culture –Distell Foundation, Oude Libertas Amphitheatre, Arts festivals Environment –waste reduction, effluent, recycling, IPW Transformation –Papkuilsfontein, Phalaborwa, Mandela Health –ARA, Advertising code Combating crime

The merger Forecast merger savings will yield 36% on investment of R484 m - 96% has been realised to date With the merger embedded, we will now build our brands

We will focus on 3 themes in 2002/03

Risks Competition authorities Gordon’s Gin Liquor Act Advertising Illegal products

Progress in respect of 5 year objectives International revenue as % of turnover Target % Target Actual

Progress in respect of 5 year objectives Return on equity Target % TargetActual

Thank you Questions?